Concert Ticket Sales Hit Worst Slump Since '90s
This summer, concert ticket sales may face their lowest numbers since the mid-'90s due to many of LiveNation's business practices.
The summer's round of concerts are expected to pull is their lowest sales numbers since the mid-'90s, with prices and traffic at the forefront of the blame. According to experts, LiveNation, the company in charge of the majority of all major concerts, pays artists overly high guarantees as to garner the maximum market share. When compounded with the costs of amphitheater upkeep and ancillary revenues like concessions and sponsorships, the consumer ends up paying for more than just the ticket.
In addition, LiveNation books many of its shows through its west coast offices, sans local input. Thus, the company can end up losing money by not accounting for regional discrepancies. For example, an artist that's worth $250,000 in an east coast city may be worth considerably less in the midwest. Ultimately, the local appeals is reflected in the ticket price.
There are a number of problems outside of prices, however. Summer traffic has proven to be detrimental to promote their tours, whether by the artists themselves or promoters. In addition, consumers may be less likely to go to a concert if the performer hasn't released any new music in the prior months.